Buyers line up for 3D Entertainment
A clutch of would-be buyers are in preliminary talks over the sale of 3D Entertainment, M&C Report understands.
Novus Leisure, the bar operator, plus private equity groups R Capital and Sun Capital are thought to be in discussions with 3DE's advisers Zolfo Cooper over a deal to acquire part or all of the 60-strong nightclub business.
A sale could value the business at up to £30m although it is believed that 3DE's owners — Luminar, Prestbury and the management team (led by David Crabtree) have not ruled out a restructuring of the business in its current form.
Novus, which operates about 40 venues, was recently restructured by its banks. It is thought to be interested in a significant part — but not all — of the business.
R Capital, which owns Little Chef and recently took control of Helena Leisure, is thought to be interested in acquiring the lion's share of the business as is Sun Capital, the specialist distressed-situation investor — not to be confused with Hugh Osmond's investment company of the same name.
It is thought that any deal is likely to be executed via some form of restructuring.
The business is 49% owned by Luminar, Britain's biggest nightclub business. It has a £10m loan note against 3DE, the value of which was recently written down from about £20m. The management team owns about 30% and Prestbury, the property firm, has about 20%.
Prestbury owns the freeholds of between 20 and 30 venues operated by 3DE. Sources indicate that it is willing to re-base the rents at these venues, trimming the annual rent by about £1m.
Sources close to the company intimated it was too early to say when a deal could be concluded.
